MANILA -- Risk sentiment on the Philippine peso rose Wednesday due to report on higher government spending last September but the main equities gauge fell on uncertainties on the Brexit moves.
The local currency ended the day at 50.97 from 51.18 Tuesday, which Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said is the strongest for the Philippine peso after its 50.89 finish last July 31.
He attributed the local currency’s strength to the government’s report about the 5.5 percent year-on-year rise of government spending in the first nine months this year.
This rise is good news compared to the negative monthly growth of government spending in the first half of the year due to the impact of the delay in the approval of this year’s national budget, which hampered the implementation of infrastructure projects, among others.
The peso opened the day at 51.23, weaker than the 51.07 start in the previous day.
It traded between 51.285 and 50.97, resulting to an average of 51.18, which is sideways from its 51.152 average in the previous session.
Volume reached USD1.16 billion, lower than the USD1.4 billion a day ago.
On the other hand, the Philippine Stock Exchange index (PSEi) fell 0.27 percent, or 21.48 points, to 7,933.76 points.
All Shares mirrored the negative close of the main gauge after a drop of 0.12 percent, or 5.91 points, to 4,778.20 points.
Financials registered the highest decline among the sectors at 0.75 percent and was followed by Services, 0.41 percent; Industrial, 0.32 percent; and Holding Firms, 0.28 percent.
On the other hand, Mining and Oil rose by 0.65 percent and Property by 0.37 percent.
Volume reached 1.17 billion shares amounting to PHP4.67 billion.
Decliners led gainers at 91 to 82 while 61 shares were unchanged. (PNA)
